The quote above is something my wife just said as she is having problems with her computer. Nonetheless it equates equally well with the following link. Let me begin by noting it is positive in terms of short term market prospects. I guess throwing trillions at the problem may very well cause a nice bouce reaction or even a year or two of advance in the market. After all, Greenspan keeping rates around 1% for too long is one of the inspirations for our current doom and gloom. He helped build one of the biggest bubbles ever. Building another bubble to solve this one is not, in my book, a good thing.
Spending trillions to fix the problem is one heck of a lot of money. I don't think it is going where it needs to go to have the beneficial effect needed. Nonetheless, the bigger point is not the short term gains but the longer term consequences that this link discusses:
http://www.nakedcapitalism.com/2009/04/guest-post-fake-recovery.html
If he is right, we are simply spending a lot of taxpayer dollars to build a relatively short term fake recovery. That is a worst case scenario. We need to get this mess behind us and not kick the can down the road. Hopefully sanity will prevail in due course, but, then again, I have been here too long to believe that it will.
Disclosures: None.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment